a. Determine the minimum income, the benefit- reduction rate, and the break-even income for each plan.
b. Which plan is the most costly? The least costly? Which plan is the most effective in reducing
poverty? The least effective? Which plan contains the strongest disincentive to work? The weakest disincentive to work?
c. Use your answers in part Ii to explain the following statement: "The dilemma of public assistance is that you cannot bring families up to the poverty level and simultaneously preserve work incentives (without work requirements) and minimize program costs."

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